Pure Storage Inc. reported third‑quarter fiscal 2026 revenue of $964.45 million, a 16% year‑over‑year increase that exceeded consensus estimates by roughly $9 million, or 0.9%. Earnings per share were $0.58, matching the consensus estimate of $0.58 and delivering a modest beat in absolute terms. The revenue lift was driven by a 14% rise in subscription services revenue and an 18% increase in product revenue, reflecting a continued shift toward the company’s Evergreen subscription model and strong demand for its all‑flash storage in AI and hyperscale environments.
The company’s gross margin climbed to 74.1%, while non‑GAAP operating income reached $220–$230 million, translating into a record 20.3% operating margin. Margin compression in the E‑family product line—attributable to pricing pressure and a heavier mix of lower‑margin legacy products—was offset by higher‑margin subscription contracts and disciplined cost management. The mix shift toward subscription services, which carry higher recurring revenue and better pricing power, underpins the margin expansion and supports the company’s long‑term profitability trajectory.
Pure Storage raised its full‑year 2026 revenue guidance to $3.63 billion–$3.64 billion from the prior $3.60 billion–$3.63 billion range, and lifted its Q4 revenue outlook to $1.02 billion–$1.04 billion, a 17% year‑over‑year increase at the midpoint. Non‑GAAP operating income guidance for the year was also raised to $220 million–$230 million. Management cited sustained demand in AI and hyperscale markets, coupled with the growing adoption of its Enterprise Data Cloud, as the primary drivers of the guidance upgrade and as evidence of the company’s competitive positioning.
CEO Charles Giancarlo highlighted that customers are increasingly choosing Pure to solve data‑management challenges in AI‑heavy workloads, while CFO Tarek Robbiati noted that the quarter’s record operating profit of $196 million—an 17% year‑over‑year rise—underscores the effectiveness of the company’s cost‑control initiatives and its focus on high‑return verticals. The executives emphasized continued investment in research and development and sales and marketing to capture additional profitable growth opportunities, signaling confidence in the company’s long‑term strategy.
Analysts noted the revenue beat and guidance raise as positive signals, citing strong AI demand and subscription momentum as key contributors to the company’s robust performance.
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